Warner Music Group is embarking on a significant restructuring initiative aimed at reducing annual expenditures by $300 million. This ambitious goal will be achieved through a strategic combination of workforce reductions and the elimination of unnecessary costs associated with administration and real estate. This information was conveyed in a recent memo from CEO Robert Kyncl to employees on Tuesday, July 1, outlining the company’s plans and vision for the future.
Kyncl indicated that numerous changes are set to take place within the next three months, with additional adjustments anticipated throughout fiscal 2026. The planned staff reductions are expected to make up a significant portion of the cost-saving measures, accounting for approximately $170 million of the total cuts, highlighting the company’s commitment to a leaner operational model.
In a memo obtained by Billboard, Kyncl emphasized that these actions represent “the remaining steps in our plan to help future-proof the company and unlock the next era of growth.” This statement suggests that Warner Music Group is concluding a series of layoffs implemented over the past few years as part of a broader strategy to adapt to the evolving music industry landscape.
“I understand that receiving this news can be challenging and unsettling, and I anticipate you will have many questions,” he added, acknowledging the emotional impact of these changes on employees.
Kyncl revealed that the funds saved through these cuts will be reinvested into Artists and Repertoire (A&R), reflecting a more comprehensive and targeted strategy for collaborating with the world’s most talented musicians. Additionally, he mentioned that the company is pursuing Mergers and Acquisitions (M&A). Notably, WMG has announced a new venture with Bain Capital, launching a $1.2 billion catalog acquisition fund, which underscores the company’s commitment to expanding its portfolio.
Under Kyncl’s leadership, Warner Music Group has experienced multiple rounds of layoffs since he took over at the beginning of 2023. The company initially announced a 4% staff reduction in March, followed by a more substantial 10% cut in the following year. Additionally, significant layoffs were executed at Atlantic Records in September, further illustrating the company’s restructuring efforts.
Despite an initial decline in the company’s market share—dropping from 17.26% in mid-2023 to 15.68% by mid-2024—Warner Music Group has since experienced a rebound. By June 26, the market share had climbed to 16.38%, showcasing the resilience and recovery of the company. Overall, WMG’s market share has also increased from 18.22% in mid-2024 to 18.71% in 2025, indicating a positive trend in their business performance.
This upward trend is reflected in the Billboard charts, where Atlantic Records artist Alex Warren’s single “Ordinary” has dominated, holding the No. 1 position on the Billboard Hot 100 for four out of the past five weeks. Earlier this year, the collaboration between Lady Gaga and Bruno Mars on “Die With A Smile” also achieved impressive success, spending five non-consecutive weeks at the top of the charts, further highlighting WMG’s market influence.
In his memo, Kyncl noted that these recent gains serve as evidence that the company’s strategy aimed at becoming “more effective and more efficient” is indeed “gaining momentum,” suggesting a positive outlook for the future.
“Our artists have consistently occupied half of the Top Ten positions on the Spotify Global chart for the past ten weeks, achieving the No. 1 spot for all but four weeks of 2025,” he reported. He also highlighted “new highs” in the music publishing aspect of WMG’s business, indicating a well-rounded performance across various divisions.
For those interested in the detailed insights shared by Kyncl, the full memo is available below.
Hi everyone,
Two years ago, we embarked on a transformative journey to reshape our company; not merely to make superficial adjustments to an outdated model, but to establish a fast, innovative, and collaborative organization that truly reflects how music evolves in the contemporary world.
Today, our strategy is gaining significant traction. Our artists have consistently held half of the Top Ten spots on the Spotify Global chart over the past ten weeks, achieving the No. 1 position for all but four weeks of 2025. These hits represent not only current successes but also our evergreen catalog for the future. Simultaneously, we are witnessing improved progress in our global recorded music market share, alongside reaching new milestones in music publishing. These achievements are driven by our dedication to becoming more effective and efficient, which enables us to invest in exceptional talent, enhance our star-making capabilities, and deepen our world-building efforts.
To build upon this success, we must continue to evolve. Today, we are announcing the final steps in our plan to secure the future of the company while unlocking the next phase of growth. Specifically, we are implementing a reduction in annual costs by approximately $300 million as we reinvest in the business: around $170 million through rightsizing our headcount for enhanced agility and impact, and approximately $130 million in cuts to administrative and real estate expenditures. Many of these changes will be implemented within the next three months, with further adjustments expected throughout fiscal 2026.
I acknowledge that this news can be difficult and disconcerting, and I understand that you will have many questions. The Executive Leadership Team has invested significant time in considering our future and determining the best path forward. Local leaders will be reaching out to you shortly regarding your specific area of the company and your role within it. We are sharing this information now so that we can be as thoughtful and transparent as possible throughout this process. These decisions have not been made lightly, and it will be hard to say goodbye to talented individuals. We are committed to approaching this with empathy and integrity.
As we move forward, our focus will be on these core drivers of our success:
We are increasing our investment in music through a new growth strategy.
A&R: Collaborating with the Executive Leadership Team, we have refined our investment criteria to adopt a more holistic and targeted approach in partnering with the world’s most exceptional musical talent. This includes focusing on (i) the most culturally impactful and highest potential repertoire centers, (ii) globally managed off-roster catalogs, and (iii) music publishing initiatives.
M&A: We also have an ambitious pipeline for mergers and acquisitions, particularly targeting timeless catalogs. Our acquisitions of Tempo and start-up RSDL are indicative of our strategy to expand both our copyright holdings and our operational capabilities. Furthermore, as announced today, we are initiating an exciting venture with Bain Capital, allocating a total of $1.2 billion to enhance our catalog purchasing power across both recorded music and music publishing sectors.
We are evolving into a stronger, leaner company to achieve greater market penetration.
TEAM: Our newly formed, faster, and more agile teams of local experts will be supported by a strengthened suite of services that encompasses Marketing, Distribution, Catalog, and Merchandising & Direct-to-Fan initiatives. This alignment of our collective efforts with our core priorities will facilitate the emergence of exceptional artistry and innovative ideas. Recent changes at LATAM and Atlantic Records, alongside the long-term rejuvenation of Warner Chappell and Warner Records, illustrate that teams can become leaner while simultaneously delivering chart-topping hits and gaining market share.
TECH: We will continue to prioritize the enhancement of digital tools available to artists, songwriters, and employees. For instance, we plan to expand the rollout of the WMG Pulse app, incorporating additional features to provide artists and songwriters with valuable insights. We aim to leverage the benefits of our financial transformation initiative, as well as enhance our supply chain and data infrastructure. By simplifying our operational processes, our WMG One platform will enable us to focus more deeply, collaborate effectively, and achieve impactful outcomes.
In an ever-evolving industry, it is essential that we continuously amplify our capabilities in long-term development for artists, songwriters, and catalogs. This foundational purpose is the very reason our company was established in the first place, and it remains our strongest asset for differentiation in the future.
As we implement these pivotal changes, we pledge to maintain regular communication with you. Thank you for your patience and your support for one another during this transition. We have some extraordinary music on the horizon, and I am confident that, despite the challenges we face, your dedication to our artists and songwriters will remain steadfast.
Thank you,
Robert
